What’s Happening with UK House Prices? Latest Property Market Moves Explained

As of April 2025, the UK housing market is exhibiting a mix of trends, with recent data indicating both growth and contraction in house prices. Understanding these movements is crucial for prospective buyers, sellers, and investors navigating the property landscape.

However, while some regions have seen price corrections, others—especially in high-demand cities and towns—are still experiencing upward pressure on prices due to limited supply and continued demand. This has created a mixed bag of results across the country.

Recent House Price Movements

In March 2025, the Halifax House Price Index reported a 0.5% month-on-month decrease in the average UK house price, bringing it to £296,699. This marks the steepest monthly decline in a year, following a 0.2% fall in February. The decline is attributed to a slowdown in demand after buyers rushed to complete transactions before changes to stamp duty thresholds took effect on April 1, 2025.

Despite the monthly dip, the annual growth rate remains positive at 2.8%, consistent with February's figures. This suggests that while short-term fluctuations are evident, the broader market maintains resilience.

Impact of Stamp Duty Changes

The recent adjustments to stamp duty have significantly influenced market dynamics. The zero-rate threshold was reduced from £250,000 to £125,000, and for first-time buyers, the threshold decreased from £425,000 to £300,000. These changes prompted a surge in transactions earlier in the year, leading to the subsequent cooling observed in March.

Market Outlook

Looking ahead, forecasts suggest a positive trajectory for the UK housing market. Savills projects an average house price growth of 4% in 2025, with a cumulative increase of 23.4% over the next five years. This optimism is underpinned by expectations of economic recovery, improved buyer confidence, and a more competitive mortgage market.

However, challenges such as inflationary pressures and potential interest rate adjustments could influence affordability and demand. Stakeholders should remain vigilant and consider these factors when making property decisions.

Conclusion

The UK housing market in 2025 is characterised by a blend of short-term fluctuations and promising long-term growth prospects. While recent stamp duty changes have led to immediate cooling, the overall outlook remains positive, especially in regions poised for growth. Staying informed about these trends is essential for navigating the evolving property landscape effectively.